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UN restricts staff at COP30 Climate Summit over Accommodation Concerns
The United Nations has asked its staff to limit their attendance at the COP30 Climate Summit in Brazil, which will take place in November. Meanwhile, government delegations continue to scramble to find hotels within their budgets. As delegations become increasingly concerned over the rising cost of accommodation, the city of Belem on the coast of the Amazon is hosting the COP30. Brazil is working on nearly doubling the number of hotel beds available, but rising prices have led some governments to call for a relocation of the COP30 conference. Brazilian officials, however, have refused. In a UNFCCC document, Simon Stiell, executive secretary of the U.N. Climate Secretariat (UNFCCC), said: "In light of the capacity limitations in Belem I would like to request that heads United Nations system, special agencies and other organizations review the number of their delegations and reduce it where possible." A Brazilian spokesperson who is in charge of the COP30 presidency has not responded to a comment request immediately. The UNFCCC didn't issue such a demand ahead of the U.N. Climate Summit in Baku, Azerbaijan last year. The annual U.N. Summit will bring together nearly every government to discuss efforts to combat climate change. The prices of accommodation in Belem have increased dramatically due to a lack of rooms. Developing countries are unable to afford them. According to the official summary of the meeting that was seen by, at a meeting between representatives of countries and U.N. officials held last month, UNFCCC requested Brazil to subvention hotel rates so that rooms would be available for $100 per night for delegates of the poorest countries in the world and for $400-$500 for all other countries. Miriam Belchior told journalists that Brazil had already incurred significant costs in hosting COP30, and couldn't provide any more subsidies. Brazil offered rooms to poorer countries at a maximum of $200 per night. This week, representatives of the U.N. and countries will meet to discuss the accommodations for COP30. Reporting by Kate Abnett. Additional reporting by Lisandra Paraguassu. Mark Potter (Editing)
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Exxon offers auto-voting as a counter to shareholder activism
Exxon Mobil has introduced a shareholder voting mechanism unique to the company. This will allow retail investors vote automatically in accordance with board recommendations at annual meetings. This could help Exxon Mobil, which is the largest oil producer in America, avoid activist campaigns. In a letter sent on Monday, the U.S. Securities and Exchange Commission stated that it wouldn't object to Exxon's plan as long as they met certain conditions. These included reminding investors who have opted in to the mechanism of their participation every year. The SEC response may encourage other companies to follow. Exxon has been fighting back against activists aggressively in recent years. It could gain more support by its large retail shareholder base, who vote for the board overwhelmingly despite their lower participation rates. Individual investors "lack the access to many services that allow institutional investors to vote quickly and easily." Exxon stated that activist groups exploited this gap in order to promote political goals and undermine shareholder value. Exxon announced in a press release that retail investors would be informed by their brokers in the coming weeks about a program where they could vote their shares according to management recommendations. Investors can manually vote according to the instructions provided in the proxy material if they change their mind. Exxon claims to be the first U.S. firm to offer this option. The company stated that it was time to "level the playing field" as a matter fairness. Exxon reported that individuals hold nearly 40% of company shares, but only a quarter vote during the proxy season. They support the board in the majority, however. Most large U.S. corporations are owned by retail investors, who hold around 30%. When companies are facing close board elections, or when campaigns for shareholder resolutions with ideological overtones are underway, they become a highly sought after pool. Apple and Tesla are the only other U.S. iconic brands that come close to Exxon in terms of retail ownership. FIGHTING BACK AGAINST THE ACTIVISTS Exxon faced several high profile activist shareholder campaigns in recent years tied to climate issues, most notably in the year 2021 when it elected three dissident board members. It continued to sue activist investors Arjuna and Follow This even after they retracted their proposal asking Exxon for a reduction in greenhouse gas emissions. Mark van Baal, founder of Follow This, said in a May 2013 statement that Exxon had attacked the rights of shareholders to make proposals regarding emissions as the cause of climate changes. Exxon’s latest annual meeting, held in May, featured no shareholder resolutions qualifying for voting. This was the first time that Exxon had not allowed resolutions since 1958. Exxon's statement noted that a number top fund managers had created similar options to allow their investors to vote alongside corporate boards. However, the fund firms have also allowed users to choose other policies, such as choices that support climate and social measures. Darren Woods, Exxon's CEO, said that the company was trying to prevent activists from submitting similar proposals year after year. Woods stated, "My opinion is that if you are going to play this game, then we can too." Sheila Dang reported from Houston, and Ross Kerber from Boston. Nathan Crooks edited the story.
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Blackstone buys Pennsylvania power plant for around $1 billion
Blackstone announced on Monday that it had agreed to purchase a natural-gas plant in Western Pennsylvania, for a price of nearly $1 billion. The investment firm is betting on the rising demand for electricity in the United States to power artificial intelligence technology. The U.S. is expected to have a record-high power consumption in 2025. This will be driven by the data centers that use AI and cryptocurrency, as well as increased residential and commercial consumption. Private investment company Ardian will sell the Hill Top Energy Center to Blackstone Energy Transition Partners. The 620 megawatt natural gas power plant started operations in 2021. The Hill Top plant, according to Blackstone executives Bilal Zhu and Mark Khan, is well positioned to support this boom. It said that the deal was a follow-up to Blackstone's July announcement that it would invest more than $25 billion in Pennsylvania's digital infrastructure and energy infrastructure, to power AI. Blackstone announced earlier this year that it would purchase TXNM Energy. an $11.5 billion deal . The asset manager made a similar investment in Virginia's Potomac Energy Center in January. This is a 774 megawatt natural gas-fired power plant. (Reporting from Bengaluru by Sumit Saha; editing by Sahal Muhammad)
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Exxon offers auto-voting as a counter to shareholder activism
Exxon Mobil has introduced a new shareholder voting system that allows retail investors to vote automatically in accordance with the board's recommendations at annual meetings. This could help Exxon Mobil, which is the largest oil producer in America, avoid activist campaigns. The U.S. Securities and Exchange Commission announced in a Monday filing that it had no objections to Exxon's plan, which may encourage other companies to follow. Exxon has been fighting back against activists aggressively in recent years. It could gain more support by its large retail shareholder base, who vote for the board despite their lower participation rates. Currently, individual investors "do not have access to many services that allow institutional investors to vote quickly and easily." Exxon stated that activist groups exploited this gap in order to promote political goals, at the expense shareholder value. Exxon announced in a press release that retail investors would be informed by their brokers in the coming weeks about a program where they could vote their shares according to management recommendations. Investors can manually vote according to the instructions provided in the proxy material if they change their mind. Exxon claims to be the first U.S. firm to offer this option. The company stated that it was time to "level the playing field" as a matter fairness. Exxon reported that individuals hold nearly 40% of company shares, but only a quarter vote during the proxy season. They mostly support the board. About 30% of the largest U.S. corporations are owned by retail investors. When companies are facing close board elections, or when campaigns for shareholder resolutions with ideological overtones are underway, they become a highly sought-after group. Apple and Tesla are the only other U.S. iconic brands that come close to Exxon in terms of retail ownership. FIGHTING BACK AGAINST THE ACTIVISTS Exxon faced several high profile activist shareholder campaigns related to climate issues over the past few years. In particular, in 2021, when three dissident board members were elected. Even after Arjuna Capital and Follow This retracted their proposal asking Exxon for a reduction in greenhouse gas emissions, the company continued to pursue its litigation. Mark van Baal, the founder of Follow This, said in a May 2013 statement that Exxon had attacked the rights of shareholders to make proposals regarding emissions as the cause of climate changes. Exxon’s recent annual meeting, held in May, featured no shareholder resolutions qualifying for approval. This was the first time since 1957 that Exxon had taken such a strident stance against resolution filers. Exxon stated that a number top fund managers had created similar options, allowing their shareholders to vote alongside corporate boards. However, the fund firms allow users to choose other policies, such as those that support climate and social measures. Darren Woods, Exxon's CEO, said that the company was trying to prevent activists from submitting similar proposals year after year. Woods stated, "My opinion is that if you are going to play this game, then we can too." Sheila Dang reported from Houston, and Ross Kerber from Boston. Nathan Crooks edited the story.
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Sources: Russian Kirishi oil refinery shuts down a key unit following a drone attack by Ukraine
Two industry sources reported on Monday that one of Russia's biggest oil refineries in the town of Kirishi (northwest) had halted an important processing unit after a Ukrainian drone attacked over the weekend. Ukraine intensified its attacks on Russia's infrastructure to damage Moscow's war effort, as the talks to end the conflict have stagnated. Russian officials have said Surgutneftegaz's Kirishinefteorgsintez plant, one of Russia's top two refineries, was among the targets attacked by Ukrainian drones last Sunday. Alexander Drozdenko is the Governor of Leningrad Region. He said that three drones had been destroyed in the Kirishi region and that a fire started by falling debris was put out. He claimed that no injuries were reported. Surgutneftegaz didn't immediately respond to a comment request. Due to the sensitive nature of the situation, two sources spoke under condition of anonymity. They said that a unit in the plant had been halted after the drones caused a fire. This unit is responsible for about 40% of the total plant processing capacity, which is around 20 million metric tonnes per year or 400,000 barrels a day. The company said that a furnace and other equipment were damaged at the facility, and maintenance could take up to a month. Sources said that the plant would boost its operations in sections still operating by up to 20 percent to compensate for the damage unit being off-line, allowing it to maintain processing volume at around 75 percent of nominal capacity. Kinef, according to industry sources processed 17.5 millions tons of oil by 2024. This amounted 6.6% of Russia’s total refining volume. The country produced 2 million tonnes of gasoline, 7 million tons diesel, 6 million tons fuel oil, and 600,000 tonnes of bitumen. (Reporting and Editing by Guy Faulconbridge, Jan Harvey)
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China continues to build crude oil stocks despite processing gains: Russell
In August, China's excess crude grew to just under 1 million barrels a day (bpd), as imports and domestic production outpaced an increase in refinery processes. According to the National Bureau of Statistics, data released on Monday shows that China's refiners produced 14.94 million barrels per day in August, an increase of 7.6% compared to the same period last year. This is the second highest month of the past 17. The crude oil imports in August were 11,65 million bpd, and the domestic production rose by 2.4% compared to the same month of 2024. It now stands at 4.3 million. After subtracting the actual processing rate, this left a surplus of 1,01 million bpd, which is almost twice the 530,000 surplus from July. China does not reveal the volume of crude oil flowing in or out of its strategic and commercial stockspiles. However, an estimate can still be made by subtracting the amount processed from the total crude oil available from both imports and domestic production. The average crude oil surplus in China for the first eight month of the year was 990,000. This volume was built up mainly from March as crude imports, domestic production and refinery processing increased at a faster pace than each other. Not all this excess crude has likely been stored, as some is processed in plants that are not included in the official data. Even if you ignore the gaps in official data, there is no doubt that since March China has imported crude oil at a rate far greater than what it requires to meet its own domestic fuel needs. Why are Chinese refiners building up their inventories when it is widely expected that prices will continue to fall as OPEC+, the group of eight exporters, continues to reduce their voluntary output reductions? The answer to this question is partly that the anticipated move towards oversupply has only been recent. China's refiners were more likely to buy more crude than needed because the price trend was already moderating. Brent benchmark futures have trended downward from a peak of $82.63 per barrel in January to a low $58.50 a barrel on May 5. Since then, the price of oil has briefly spiked above $80 per barrel in June during the conflict between Israel & Iran, before stabilizing at a level around $65. More to be stored? Market participants are wondering if prices at this level can continue to encourage China’s refiners add to their inventories. During the APPEC oil-and-gas events held in Singapore last week, the future of China's stocks was a hotly debated issue. There was consensus that Chinese refiners could add more crude oil to storage. However, there were disagreements over the likelihood of this happening. China's refiners are usually concerned with price. It appears that their views are changing and they now believe that the prices should be closer to $50-$60 per barrel, rather than the current range of $60-$70. It's worth noting, however, that China continues to buy significant quantities from three countries currently subject to Western sanctions: Russia, Iran, and Venezuela. According to Kpler commodity analysts, the number of imports from Venezuela in August was 561,000 bpd, making it the highest month since 2013. Kpler has tracked imports at 755,000 bpd, and is expecting this to continue in September. Kpler reports that imports from Iran increased to 1.02 million barrels per day (bpd) in August from 737,000 in July. Kpler expects a rebound in September to 1,13 million bpd. China's crude oil stockpiling is likely to continue being a X-factor on the oil market this year given its opaque nature. It is reasonable to expect that China will continue to buy more oil than needed if prices fall amid increased supply. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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Copper trapped between weak Chinese data and hopes for stimulus
On Monday, copper prices remained above $10,000 per metric ton as the market weighed downbeat metals consumption data from China against hopes of stimulus measures and interest rate reductions in the United States. The benchmark three-month copper price on the London Metal Exchange rose 0.1% by 1000 GMT to $10,073 per ton, after reaching an intraday high of $10,000, which was close to a five-month high reached on Friday of $101,126. The data showed that China's factory production and retail sales fell to their lowest levels since last year in August, putting pressure on Beijing to provide more stimulus. "This week, the theme will be stimulus. Not only in China, after that data dump which was not exactly pretty, but in the U.S., with a rate reduction expected later this week," Ole Hansen said, head of commodity strategies at Saxo Bank, in Copenhagen. It is expected that the U.S. Federal Reserve will cut rates by 25 basis points at its meeting next week, following recent weak reports on the job market. Investors also viewed the U.S. - China negotiations in Madrid. These focused on Bytedance's divestment of TikTok as part of broader discussions on tariffs and policy. The Shanghai Futures Exchange's most traded copper contract closed the daytime trading 0.4% higher, at 81,000 Yuan ($11371.77) per tonne. LME copper has gained 14% this year but is still struggling to break through the $10,000 psychological level. Hansen stated that he is watching a double top technical formation on the LME copper market, based off of highs in March 2010 at $10,164.50 and in September 2011 at $10,158. "That massive double-top is really holding the market back for now." He said that he thought we would need an economic stimulus to remove the cap in the near term. LME aluminium rose 0.1%, to $2,691 per ton. Nickel increased 0.6%, to $15,480. Lead fell 0.6%, to $2005.50. Tin dropped 0.1%, to $34,935; and zinc was unchanged at $2,956. Click here to see the top metals stories ($1 = 7.1229 Chinese Yuan) (Reporting and editing by Eric Onstad)
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China accuses the US of bullying in pushing for tariffs on Russian oil purchases
China accuses the United States "unilaterally bullying" for calling on allies imposing tariffs on China because of its purchase of Russian crude oil. This is fueling tensions at a meeting between Chinese and U.S. officials in Spain, where they are trying to resolve their trade disputes. China has rejected Washington's demand that the Group of Seven countries and NATO countries impose a secondary tariff on Chinese imports due to its purchase of Russian crude oil, China’s commerce ministry announced on Monday. It called it "a textbook example of unilateral bullying, economic coercion, and economic intimidation". On Monday, officials from China and the U.S. began a second round of talks in Madrid. They are seeking to find common ground over issues such as tariffs and a U.S. request that Chinese owner Bytedance divest from TikTok. China's regulator of the market said on Monday that a preliminary investigation had found that U.S. chipmaker Nvidia violated China's antimonopoly laws. Trade relations between the two largest economies in the world have soured despite a fragile truce on tariffs reached in May, which was extended in August. This truce prevented tariffs on goods of each other from reaching levels in excess of three digits. Negotiators on both sides are still tackling a number of difficult issues, including the U.S.'s curbs on tech and chip exports; China's support of Russia; and what Washington views as inadequate efforts to stop the flow of precursors chemicals for fentanyl in the U.S. The Chinese Ministry urged the U.S. in its statement to be "prudent" with words and actions and to resolve differences through dialogue. Reporting by Liz Lee and Yukun Zhu; Editing by Aidan Lewis, Christina Fincher and Beijing Newsroom
BYD leads Chinese electric vehicle push in Australia, a friendlier market
BYD and other Chinese car manufacturers are bringing new electric vehicle designs in droves to Australia, a market where they have not faced trade barriers and sales have risen due to EV aids and tax advantages in addition to high fuel costs.
Given that coming to power in 2022, Prime Minister Anthony Albanese's government has actually aggressively promoted EV adoption as part of the country's plans to cut down on emissions - a change that followed a decade of weak environment action under conservative leaders.
That's developed an effective tailwind for electric vehicle need. EVs represented 7.2% of Australian brand-new vehicle sales in 2023, up from 3.1% a year previously.
While Tesla too is greatly benefiting, it is the Chinese producers in the non-premium end of the market which position the biggest hazard to incumbent automakers like Toyota and Ford whose broad line-ups of gasoline-engine vehicles imply they have more to lose.
Last year, sales for EV giant BYD, which got in the marketplace in 2022, climbed almost 6 times to more than 12,000 lorries. It now has 14% of Australia's EV market, 2nd to Tesla which has 53%, data from the Federal Chamber of Automotive Industries programs.
The opportunity is very clear, said David Smitherman, chief executive at EVDirect, BYD's distributor in Australia.
We require to now enter into the mainstream market since we have actually. offered to the early adopters and the enthusiastic EV purchasers.
BYD will add 2 SUVs and a pickup to take its item. line-up in Australia to six this year, Smitherman said. EVDirect. will also open 30 more car dealerships in the next 18 months for. total of a 55 and has started fleet sales to business like. Uber.
Chinese state-owned SAIC Motor will release 3. brand-new designs this year under its MG brand, consisting of the MG3. plug-in hybrid and MG Cyberstar electric roadster, taking its. EV/hybrid product line-up in Australia to five.
Incumbent car manufacturers are also wanting to up their game. Ford has 2 energized vehicles in the Australian market and. another three on their way, according a business spokesperson.
Toyota, which offers a number of hybrids in Australia, has just. released its very first electrical vehicle here. It did not provide comment. on the market.
' GIVING IT A GO'
Although Australia is a relatively small market on an international. scale with 1.2 million automobiles sold in 2015, it's extremely. appealing to Chinese automakers given that it does not have a. automobile production market and is viewed as unlikely to introduce. protectionist trade barriers.
Chinese start-up Leapmotor, which has partnered. with Stellantis to expand internationally, has actually designated. Australia as a priority market noting its lack of local cars and truck. makers.
In key markets, stress are plentiful. European authorities have. released a probe into whether Chinese EV makers unfairly benefit. from state subsidies, while the U.S. has actually introduced an. examination into whether Chinese-made cars and trucks might be used to. spy on Americans.
But relations between Canberra and Beijing have actually warmed after. years of stress, with both sides agreeing to turn the page and. expand cooperation. Albanese's federal government has not offered any sign. it is stressed over cybersecurity risks positioned by Chinese cars.
Australia's Department of Foreign Affairs and Trade declined. to comment on the matter.
To spur electrical automobile need, the federal government has introduced. tax exemptions for EV cars and truck leasing/purchase arrangements available. to some consumers through their employers.
The nation's 3 most populous biggest states - home to. Sydney, Melbourne and Brisbane - have likewise set goals for EVs to. account for 50% of all new automobile sales by 2030, providing generous. refunds on EV purchases and investing heavily to construct charging. stations.
That was a significant encouraging element for Mark Adamson, a. 61-year-old TV director in the state of Queensland. He acquired. A$ 6,000 ($ 3,900) off the A$ 54,000 market price of his extended. variety BYD Atto 3 SUV through state federal government rebates and after that. BYD offered a discount of approximately A$ 2,000.
I figured why not try? It's sort of really worth. doing and I have excess solar in the house so I'll primarily charge from. in your home, so it makes it a no-brainer in a lot of methods, he stated.
Certainly in Queensland, state federal government refunds alone indicate. that an Atto 3 can cost less than Toyota's gasoline-engine RAV4. crossover - a similar design.
For Sydney union organiser Peter Street, 63, who eliminates. when a week to see family who live 370 km (230 miles) away, it. was the requirement to reduce fuel costs near record highs. that convinced him to switch from a 2008 Volkswagen diesel van. to an Atto 3.
He now spends about A$ 20 weekly on charging rather of. $ 130 a week on fuel.
Expectations are high that EV need will continue to rise,. although projections differ. PwC estimates half of Australia's brand-new. cars and truck sales will be EVs by 2027. BMI, a system of Fitch Group,. predicts 18% by 2032.
(source: Reuters)